| A | B |
|---|
| What word means “having unlimited wants and needs but limited resources”? | scarcity |
| What term is used to describe the value of an alternative that is not chosen? | opportunity cost |
| What are the Four Factors of Production? | land, labor, capital, entrepreneurship |
| The work done by humans is an example of which factor of production? | labor |
| Tools, machines, money and buildings are examples of which factor of production? | capital |
| Which factor of production is being used when an individual decides to start a business? | entrepreneurship |
| What word means “the additional cost of producing one more unit of a good or service”? | marginal cost |
| What components must be considered when a producer is calculating the total cost of production? | fixed costs + variable costs |
| What type of cost is dependent upon how many units a business decides to produce? | variable costs |
| What is exemplified when a business reaches a point at which producing additional units is less and less profitable? | law of diminishing returns |
| What is the primary goal of individuals and businesses in a free-market economy? | profit |
| What economic term identifies the value of an option that is not selected when a choice is made? | opportunity costs |
| What term refers to the pay per hour that an individual receives for their work? | wages |
| What are the basic economic questions that every society decides? | What should we produce? How much should we produce? How should we produce the goods and services? |
| What do economists call the inputs that are needed to produce goods and services? | Factors of Production |
